Highlights
Consumer sentiment is steady and strong at 98.3 for the preliminary November reading. This is 3 tenths over expectations though down 3 tenths from October. The current conditions component, at 113.2, is up very slightly so far in November offsetting a 1.6 point step lower for expectations which are at a still solid 88.7 that reflects a strong outlook for the labor market.

Inflation expectations are mixed with the year-ahead reading down 1 tenth to 2.8 percent but the 5-year outlook up 2 tenths to 2.6 percent. These levels have been steady all year and, for the Federal Reserve, confirm that inflation expectations remain fully anchored.

The cut-off date for today's report was Wednesday this week which includes some responses following the mid-term elections. But the report notes that these later responses showed no significant change from responses earlier in the month. The consumer sentiment report is winding up its best year since 2000 in what ultimately reflects the unusual strength of the labor market.

Consensus Outlook
At a consensus 98.0, the consumer sentiment index is expected to ease in the preliminary reading for November. October's final reading was 98.6 with the month's preliminary reading at 99.0.

Definition
The University of Michigan's Consumer Survey Center questions 600 households each month on their financial conditions and attitudes about the economy. Consumer sentiment is directly related to the strength of consumer spending. Consumer confidence and consumer sentiment are two ways of talking about consumer attitudes. Among economic reports, consumer sentiment refers to the Michigan survey while consumer confidence refers to The Conference Board's survey. Preliminary estimates for a month are released at mid-month. Final estimates for a month are released near the end of the month.
Why Investors Care

Consumer sentiment is mainly affected by employment conditions but bear-or-bull markets can also have an impact as well as national and global events. Sentiment is watched as a long- run barometer for consumer spending.